"South Korea is Indonesia`s investment partner whose investment realization is high, reaching some 60 to 70 percent. If South Korean investors have commitment, they will realize most of it," Sibarani said.
Jakarta (ANTARA News) - President Joko Widodos (Jokowis) current visit to Seoul will increase South Korean investors confidence on the investment climate in Indonesia, Capital Investment Coordinating Board (BKPM) Chief Franky Sibarani said.

"South Korea is Indonesias investment partner whose investment realization is high, reaching some 60 to 70 percent. If South Korean investors have commitment, they will realize most of it," Sibarani said in a written dispatch made available here on Sunday.

Sibarani is accompanying President Jokowi who is on a visit to South Korea from May 15 to May 18, 2016.

The BKPM hopes that the presidents working visit will secure South Korean companies investment commitment, either in the form of new investment or investment expansion.

"A South Korean garment and foot wear company which is now on the construction stage in Jepara District, Central Java, is expected to commence commercial operation in September 2016. This company will employ some 20,000 workers with an investment worth US$120 million," the BKPM chief said.

He said that in attracting investment from South Korea, Indonesia is facing stiffer competition from Vietnam than other ASEAN countries.

The FDI Market data showed that South Korea made higher investment in Vietnam than in Indonesia.

Sibarani said his office will continue to inform changes made in Indonesia on investment climate to South Korea.

"We continue to coordinate with various parties in providing complete and comprehensive information to South Korean investors. Among parties so far supporting us included the Indonesian Embassy in Seoul, the BKPM Special Desk and representatives in South Korea as well as the marketing officer team which helped facilitate technical ministries," Sibarani said.

In the first quarter of 2016, South Korea is ranked sixth on the list of Indonesias investor countries with an investment value of US$188 million,consisting of 435 projects and absorbing 28,349 workers.

Last year, the amount of investment coming from South Korea totaled US$1.6 billion, up 7.6 percent from the same period in the previous year.

In the 2010-2015 period, South Korean investment reached US$8 billion. During the period, the South Korean investment was dominated by investment in the metal industry, accounting for 45 percent.(*)

Editor: Heru Purwanto
Copyright © ANTARA 2016